AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO A DELAWARE ENTERTAINMENT PRODUCTION TAX CREDIT.

The document shifts from an amendment format (specific line changes to HB 364) to a full consolidated bill text containing all sections: purpose, definitions, credit mechanics, loan-out withholding, administration, appeals, audit, reporting, annual cap, data sharing, and sunset clause.

The final bill text includes a complete definitions section (Section 2002F) covering commercial multi-market distribution, loan-out company, qualified activities (with specific exclusions like political advertising, obscene content, athletic events, website development, and infomercials), qualified company, qualified expenditure, and esports.

Sponsors expanded from Rep. Harris alone to include Rep. Michael Smith and Sen. Lockman as primary sponsors, plus a long list of additional House and Senate cosponsors.

HA 2 proposed lowering the minimum qualified expenditure threshold from $500,000 to $100,000. The final bill text retains the $500,000 threshold in Section 2003F(b).

The final bill text establishes a $10 million annual cap on total credit awards (Section 2009F) with prioritization criteria favoring applicants who employ Delaware residents, use in-state vendors, are repeat applicants, or plan permanent expansion.

HA 2 proposed raising the loan-out company withholding rate from 6% to 6.6%. The final bill text in Section 2004F retains the 6% rate.

HA 2 proposed adding audit verification that loan-out company payments were timely remitted and that companies were properly licensed. The final text has a general audit requirement (Section 2007F) requiring independent CPA audits at the applicant's own cost, with alternative procedures for small businesses.

HA 2 proposed removing the word 'projects' from qualified activities. The final text defines qualified activities as 'media projects' (a defined term) and 'digital interactive entertainment,' effectively keeping project-based language in a structured definition.

The final bill text includes a sunset clause (Section 2011F) prohibiting new applications after June 30, 2031, and requires reports to the General Assembly by December 1, 2028 and December 1, 2030.

The final bill text adds an appeals process (Section 2006F) allowing taxpayers to challenge noncertification decisions to the Secretary of State within 60 days, with judicial review available after exhausting administrative remedies.